LogonUser failed with error code : 1326

Has anyone experienced this problem?
I have installed Litware HR on an XP VPC and accessed the try the application page. When I try to "provision the application" I get the following error:

LogonUser failed with error code : 1326
Description: An unhandled exception occurred during the execution of the current web request. Please review the stack trace for more information about the error and where it originated in the code.

On further investigation I've noticed that I don't seem to have .svc mapped to aspnetisapi.dll. I try running aspnetregiis -i -enable and ServiceModelReg -r but netiher seemed to work and I can't manually set up this relationship.

Ok - I had the 404 error there for a while. I didn't have the .svc related to aspnet _ isapi.dll. I've manually done that now and back to the 1326 error. The Provisioning user is an Admin user and is the the web config file. So .... I'm back to square
one ...

My VPC is set up as US English and my keyboard is UK English, the characters " and @ are swapped. As the password is a masked field I didn't realise the password I was setting for the provisioning user different to the one in the config.